Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing

Monthly Archives: November 2011

Profiting From The Downpour

Many investors are familiar with local real estate comps, but they are relatively new to using little-known, government programs to easily invest in government tax certificates, tax deeds, tax liens, and related auctions.  The thought of earning guaranteed profits on solid, secure, repeatable investments interests us all.  The key is learning which questions to ask when deciding if a property is worth your time and money.

Here’s what you need to ask for when yo0u talk to county officials:

– Sale Date? – All counties hold tax certificate auctions at different times of the year. Always nail the date down because it may involve planning and travel on your end.
– Where Will The Sale Be Held? – Usually at the county seat courthouse building – smaller counties may use any building in town… always check and have your maps handy. If all else fails… ask for directions. Be sure to get the details! – ask for the exact building in the county office complex and room number.
– Where will the Sale be Advertised? – The County Treasurer may send you a specially printed list of auction properties for a fee (usually between $4.00 and $15.00) or the list maybe so massive it is printed by the local newspaper in its own exclusive section! (It’s not usual to find between10 to 30 thousand properties up for auction in large counties.) Now envision the perfect opportunities to make huge profits in real estate the easy way!
– What is required to register? – Once again, all counties have a different of rules. Be prepared to show any legal ID’s (You may need multiple ID’s and complete valid personal information.)
– What Kind of Funds Do I Need for a Tax Certificate Auction? – This a CORE question that will make it or break it! Some counties will only accept cashier’s checks or hard cash. Many will accept your personal check and even have debit card processing capabilities. This is an important reality – other bidders may represent banks and financial institutions with deep, deep pockets. For a fact… you can do this on your terms and budget.

Remember I always say you make your money when you buy.  Happy Investing!!!

Upgrades To Make YOUR Sale!

In today’s market and current real estate comps,  it is important to maximize the return on your investment when updating your property to sell. But which upgrades will be most worthwhile and give you the best return? Here is my list of the top property upgrades that will reward you with the greatest return for your time and investment.

1.) Painting – Updating the exterior paint on your home will increase your curb appeal and make your property stand out in the neighborhood. Updating the interior paint will bring life to those old walls and is a great way to provide dramatic results with a relatively small investment. Painting your trim white helps make it stand out while offering a modern look. Sticking with earth tones such as pale yellow or tan for your walls is recommended as to not overwhelm any potential buyers. 

2.) Updating the Kitchen – Nothing can be more discouraging than a tired old kitchen. This can be one of the most expensive areas of the home to update but also one of the most rewarding. While replacing cabinets is sometimes required remember they can also be refaced. Adding high quality fixtures, stainless sinks, granite counters, stainless appliances, new flooring and updated lighting can bring life to your old kitchen and make it the centerpiece. Please remember that when remodeling the kitchen don’t overdo it,  keeping it simple gives the buyer an opportunity to envision putting their style in the home.
3.) Updating a Bathroom – Updating a bathroom can be an inconvenience but most potential buyers will be glad you did the work for them. Keep it simple and once again try to appeal to as many people as possible. Replacing counter tops, sinks, the toilet, flooring and lighting are all simple updates. If you have a tired tub or shower you may consider re-tiling the surround and having the tub professionally resurfaced. This tends to cost less than having it replaced.

4.) Landscaping – Curb appeal is very important when selling a home. Many potential buyers have made up their mind about a house before even entering it. How does your home look from the street? Adding some trees, a hedge in the right spot, perennials, an attractive walkway to the front door or even hanging baskets can help dramatically update your homes curb appeal. While backyards are important as well, focusing on what can be seen from the street will net you the best return for your investment.

Okay guys,  I hope these few tips have been helpful when you are working with a fixer-up or foreclosure property.  And remember,  keep InvestorCompsOnline in mind when you get ready to set your price for selling we are here to help.

RE Supply And Demand

With millions of failed businesses, real estate comps reporting sinking property values, and the economy in shambles, it might seem that now is not the best time to get into real estate investing. Actually, the opposite is true: There’s never been a better time to become an investor.

Prices for houses are at historic lows, at values not seen in decades. Also, financing is relatively cheap to obtain: You can get a traditional, 30-year mortgage at prices not seen since the 1950s.  You see, the housing collapse just depends on which side you’re on. If you’re an investor, you can get more house for the money, especially with foreclosures and short sales.

Investing is still one of the most viable businesses to be in. Where else can you buy the lifeblood of your business, in this case, real estate, that’s discounted 40, 50 percent or more of what you would have paid just a few short years ago? Real estate is nearly always a good business to invest in, and it’s a mainstay of the economy. The market will always rise and fall.

How Real Estate Investors Benefit From Economic Changes

Whether you decide to invest in rental properties, foreclosures, short sales, subject to or tax liens, you can always benefit with investing. A place to live is a basic need, and someone will always need to buy and someone will always need to sell. Where you are in this mix will depend on how well you’ve positioned your business. The economy and market forces always have a way of changing things. If the market is bad, people will often sell their homes, typically  at a discount. If the economy is good, you’ll have more people buying homes. Depending upon the services you offer, real estate investing professionals can benefit.

Bottom line, people always need a place to live. If you make sure that you meet that need as an investor, real estate investing is one of the most stable businesses to be in, no matter the economy.

 

Real Estate Comps End 2011 LOW!

Real Estate Comps prices in the U.S. are expected to fall a further 2.4 percent to close out 2011, compared to the first half of the year, as bank-owned properties drive down prices, unemployment remains high, and consumer confidence stays weak. Of 50 U.S. markets tracked by a national real estate market review company, only five metro areas are forecast to produce home-price gains by the of 2011: Washington, New York, Orlando, Dallas, and San Francisco.

U.S. home prices fell by 3.2 percent in the first six months of 2011 compared to the previous half, with median home prices dropping to $170,000. The peak of the market was in summer of 2006, at $240,000, indicating a median price decline of nearly 31 percent since then.

Before the housing collapse, the number of distressed sales historically made up a small percentage of the market. In the first half of 2011, however, bank-owned homes represented more than 30 percent of total sales, which is far above pre-2006 levels of less than 5 percent. In 2010 there were 1.7 million distressed sales, up from an average of 450,000 per year during the pre-collapse period from 2000 to 2005.

The rate of decline has tapered off in recent months, following a slow winter homebuying season and a double dip earlier this year. Prices are expected to be less volatile, though it is unlikely national home prices have reached a true and sustainable bottom.  National home prices will probably drift slightly downward until next year because of such factors as the financial crisis in Europe and discussions regarding the debt ceiling in Washington.

Under current conditions, and presuming continued job growth or should I say lack of growth, home prices may reach bottom in the first quarter of 2012. In its most recent economic projection, the Fed expects the jobless rate in 2012 to fall to between 7.8 percent and 8.2 percent, with gross domestic product growth anticipated at from 3.3 percent to 3.7 percent.

Real Estate Investing in 2012

Happy Thanksgiving!

I love Thanksgiving for one simple reason, I get to make lots of people smile.  I love feeding my family and watching their faces when they see the spread at the table.  I always buy way too much food with the sole idea of getting my family to say “Wow!” and of course donating to the needy.

This got me thinking about Real Estate Investing and what 2012 might bring us.  Will 2012 be Thanksgiving for Investors?

As with most things in life, it will depend on your attitude and how you choose to tackle the opportunities/challenges that 2012 will offer.

In today’s post I have chosen the three most common topics discussed about Real Estate Investing.  We will discuss Price, Finance and Foreclosure.

Prices in 2012

The best news I can offer about 2012 is that I believe the foundation of real estate prices will become firmer.  Not rock solid, but they will certainly become firmer than the quicksand we are currently in. Specifically, prices in the lower tier and mid market will stabilize and stop the negative trend.  Unfortunately, the high-end and move up markets still have some significant pain to be felt throughout 2012.

If I am correct in my prediction it means that inventory at the lower end of the market will continue to become solid rental homes as cheap properties are turned into performing assets.    Stable prices and increasing transition volumes will drive 2012 to become the bottom of this real estate cycle.  We won’t be off to the races but we will have caused an inflection point and prices will slowly start to mend over time.

Lending in 2012

The good news is lending has to get easier next year, because it simply can’t get any harder (can it?). When lending loosens up more buyers will qualify to purchase real estate.  Increasing the number of closed transactions will mean prices will start to rise and the asset quality of banks will improve.  As the asset quality of banks starts to improve we will have officially turned the corner as banks will increase lending on real estate.  As this occurs we will witness the first of many positive feedback loops as good news causes more good news.

Foreclosures 2012

Lastly, I believe we will see the peak in foreclosures (Finally).  The backup caused by the robo-signing scandal has to break free soon.  When this does, we will see the spike in foreclosures and we can start the long road to recovery.

When foreclosures peak we will finally start to see some positive year-on-year metrics for sales, prices, and equity positions. When year-on-year metrics turn positive for real estate, attitudes will change.  Newspapers, Magazines and the talking-heads on TV will start discussing the positive trends in real estate and this will cause real estate values to rise.

When the press starts to push real estate it will be too late to jump into the market. In fact when magazines start printing headlines and providing cover stories about the new found wealth in real estate it might be time to sell.

So if you’re a strategic buyer in 2012, real estate investing should prove to be a time of “Thanksgiving”.  However, if you are a seller, I am afraid real estate will still be a source of sadness as 2012 will be a great buyers market.  Don’t give up hope sellers as 2013 could be your year ….

Happy Investing